Table 13 Shows the Hypothetical Trade-Off Between Different Combinations of Brushes

question 96

Multiple Choice

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs.
$\begin{array}{|c|c|c|c|c|c|}\hline & \begin{array}{c}\text { Number } \\\text { of } \\\text { Brushes }\end{array} & \begin{array}{c}\text { Opportunity Cost } \\\text { of Brushes in } \\\text { Terms } \\\text { of Combs }\end{array} & \begin{array}{c}\text { Number } \\\text { of Combs }\end{array} & \begin{array}{c}\text { Opportunity Cost } \\\text { of Combs in Terms } \\\text { of Brushes }\end{array} \\\hline \mathrm{J} & 0 & & 4 & \\\hline \mathrm{K} & 10 & & 3 & \\\hline \mathrm{L} & 17 & & 2 & \\\hline \mathrm{M} & 21 & & 1 & \\\hline \mathrm{N} & 23 & & 0 & \\\hline\end{array}$

$\text {Table \(1.3\) }$
$\text {Production Possibilities for Brushes and Combs}$
On the basis of your calculations in Table 1.3, what is gained from producing at point L rather than point K?

• A)17 combs.
• B)10 combs.
• C)1 brush.
• D)7 brushes.

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Definitions:

Scrambled Merchandise Stores

Retail outlets that offer a wide range of unrelated products under one roof.

Category Killer

A large retail store specializing in a particular product category, dominating the market and often driving smaller retailers out of business.

General Merchandise Store

Retail establishments offering a wide range of products from various categories including clothing, housewares, and groceries.

Value Outlet

A retail store that offers products at lower prices by reducing overhead costs and offering goods that provide value for money.